Tri-State Generation and Transmission Association announced this week that it will not be raising the rates that participating utilities pay for electricity in 2025.

In a press release, Tri-State bragged that the rates it charges participating utilities have increased by less than 2.5 percent from 2017 to 2025, which is significantly lower than the inflation rates.

“Through their ownership of Tri-State, our members enjoy competitively priced power, delivered with unrivaled reliability and the confidence that we have the resources to keep the lights on, even as we continue our energy transition,” Duane Highley, Tri-State’s Chief Executive Officer, said.

Some of the member utilities in New Mexico include the Mora-San Miguel Electric Cooperative, Sierra Electric Cooperative, Columbus Electric Cooperative, Central New Mexico Electric Cooperative, Southwestern Electric Cooperative, Northern Rio Arriba Electric Cooperative, Spring Electric Cooperative and Otero County Electric Cooperative.

Tri-State’s announcement does not necessarily mean that customers of those utilities will not see rate increases. Rate increases can occur for reasons like needed infrastructure upgrades that are unconnected to the cost of power that Tri-State provides its members.

However, the rates that Tri-State charges its members can impact what customers pay.

“Stable wholesale power costs are critical for distribution cooperatives and public power districts to affordably serve rural communities, many of which are in economically challenging areas across the West,” Tim Rabon, chairman of the Tri-State Board of Directors and trustee of Otero County Electric Cooperative, said in a press release.

Tri-State’s board of directors approved its 2025 budget on Sept. 24. That budget includes a decision to end production of coal at the Colowyo Mine and transition it into full reclamation next year. The mine produces coal that is used at the Craig Station in Colorado, where the three units will retire between 2025 and 2028. The Craig Station is fully owned by Tri-State and the Colowyo Mine is one of two sources of coal for the plant.

“As we face increased costs to operate and continue our energy transition, we had to look hard at our operations and see where we could lower costs,” Highley said. “This review resulted in making some hard decisions to existing plans, including accelerating the transition to reclamation at the Colowyo Mine.”